Industry condemns closure of retail stores in UP

Industry has condemned the decision of the UP government for closure of retail stores of various corporates in the state.

The apex body said the Non-Banking Finance Companies (NBFCs) should also be allowed to accept old notes till December 31

Speaking to Indiaretailing, a spokesperson for industry chamber ASSOCHAM said, “The decision of the state government will send out adverse signals and might affect the development of the state.”

Commenting on the development, ASSOCHAM President Venugopal Dhoot said, “The decision seems to have been taken in haste and, therefore, should be reviewed.” Dhoot advised the state administration to immediately annul the decision in the interest of the state and its industrialisation.

Other industry chambers and several industry experts are also of the view that progressive modern retailing in the country should get the conducive atmosphere it deserves to flourish, as it will not only boost the economy, but will also turn out to be one of the biggest sectors for employment generation.

The UP government on Thursday ordered the closure of standalone retail outlets in the state selling vegetables, fruits and groceries. However, retail chains operating out of malls can operate as of now.

Chief MinisterMayawati has ordered that all retail stores in Uttar Pradesh, specifically those of biggies like Reliance and RPG-owned Spencer, be closed. Law-and-order problems emanating from the opposition to the entry of big corporate retailers in the segment have been cited as the prime reason for the closures.

Meanwhile, speaking to Indiaretailing, Praveen Khandelwal, secretary general, Confederation of All India Traders (CAIT), said, “The Union government should form an independent special task force to make an in-depth study of the impact of activities of corporate retailers on small shopkeepers and other related sections.”

CAIT National President BC Bhartia has demanded formulation of a national policy on retail trade and small manufacturing industries, and implementation of the national policy on urban street vendors.